Term
| Financial Responsibility Laws |
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Definition
| Laws enacted to ensure that motorists have the financial ability to pay for any property damage or bodily injury they might cause as a result of driving or owning an auto |
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Term
| Compulsory Auto Insurance Law |
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Definition
| Law that requires the owners or operators of automobiles to carry auto liability insurance at least equal to certain minimum limits before the vehicle can be licensed or registered |
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Term
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Definition
| Insured in an insurance contract |
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Term
| Unsatisfied Judgment Fund |
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Definition
| A fund designed to provide a source of recovery for victims of motor vehicle accidents when an at-fault motorist is unable to pay any judgment |
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Term
| Uninsured Motorists Coverage |
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Definition
| Coverage that provides a source of recovery for occupants of a covered auto or for qualifying pedestrians who are injured in an accident caused by an at-fault motorist who does not have the state minimum liability insurance or by a hit-and-run driver |
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Term
| Underinsured Motorists Coverage |
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Definition
| Coverage that applies when a negligent driver has liability insurance at the time of the accident but has limits lower than those of the injured person's coverage |
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Term
| No-Fault Automobile Insurance |
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Definition
| Insurance that covers automobile accident victims on a 1st-party basis, allowing them to collect damages from their own insurers regardless of who was at fault |
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Term
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Definition
| State statutes that require motorists to purchase (or require insurers to make available) insurance that provides minimum first-party benefits to injured persons regardless of fault |
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Term
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Definition
| In a no-fault system, a dollar limit in total medical expenses an injured victim must exceed before he or she is permitted to sue the other party (a.k.a. dollar threshold) |
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Term
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Definition
| In a no-fault system, the designated criteria that are verbally "set forth in the statute that limit the right to sue" |
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Term
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Definition
| In a no-fault system, a plan that provides certain personal injury protection (PIP)-type benefits such as medical payments and disability coverages to injured victims, without regard to fault |
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Term
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Definition
| In a no-fault system, a plan that gives the insured the option, at the time an auto insurance policy is purchased or renewed, of choosing whether to be covered on a no-fault basis |
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Term
| Personal Injury Protection (PIP) Coverage |
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Definition
| Coverage that pays benefits, regardless of fault, for medical expense, income loss, and other benefits, resulting from bodily injury to occupants of a covered auto |
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Term
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Definition
| The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liabile for the loss |
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Term
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Definition
| The term referring collectively to insurers and other organizations that make insurance available through a shared risk mechanism to those who cannot obtain coverage in the admitted market |
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Term
| Safe Driver Insurance Plan (SDIP) |
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Definition
| Plan that allows for lower basic premiums for accident-free driving records and a surcharge for accidents |
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Term
| Automobile Insurance Plan |
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Definition
| Plan for insuring high-risk drivers in which all auto insurers doing business in the state are assigned their proportionate share of such drivers based on the total volume of auto insurance written in the state |
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Term
| Joint Underwriting Association |
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Definition
| Organization that designates servicing insurers to handle high-risk auto insurance business; all auto insurers in the state are assessed a proportionate share of the losses and expenses based on their percentage of the voluntary auto insurance premiums written in the state |
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Term
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Definition
| A state-wide reinsurance pool to which insurers can assign premiums and losses for high-risk drivers; orginal insurers service the policies, but all insurers in the pool share the losses and expenses of the facility in proportion to the total auto insurance they write in that state |
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